Retirees report £119,000 shortfall in pension savings

WRLO Accountants — Thu, 06 Jun 2024 19:44:01 +0000

UK adults face a significant shortfall in their pension savings at retirement compared to what they wanted to retire on, according to research from Standard Life. Standard Life’s Retirement Voice Report found that, on average, retirees had hoped to build up a pension pot of £250,000. However, the average amount that they accumulated by retirement was £131,000 – leaving a £119,000 shortfall. Based on current annuity rates, a pot of £250,000 could lead to an income of £1,007 monthly, or £12,091 a year, assuming a retirement age of 66. A pot of £131,000 could result in a monthly income of £527 in retirement, or £6,332 yearly – £480 a month, or £5,759 a year less. However, even the not insignificant £250,000 pot falls short of a ‘moderate’ standard’ of living in retirement, according to the Pensions and Lifetime Savings Association. Dean Butler, Managing Director for Retail Direct at Standard Life, said: ‘It can be hard to work out how much you need to save to achieve your desired standard of living in retirement, particularly earlier on in your career. It’s even harder to stick to it, as everyday expenses and those one-off costs that come up in life constantly threaten […]

The post Retirees report £119,000 shortfall in pension savings appeared first on WRLO Accountants.

monthly income Archives - WRLO Accountants

Retirees report £119,000 shortfall in pension savings